As global companies accelerate their transition toward renewable electricity, Energy Attribute Certificates (EACs)—particularly International Renewable Energy Certificates (I-RECs)—have become a critical tool for credible renewable energy claims.
In markets like Bangladesh, where direct access to renewable electricity remains limited, I-RECs play a central role in enabling corporates to align with RE100 commitments, ESG disclosures, and buyer sustainability requirements.
This article explores the Bangladesh I-REC landscape, how it works in practice, and what it means for organizations seeking credible renewable energy procurement.
Why I-REC Matters in Bangladesh
Bangladesh’s electricity grid is still heavily reliant on natural gas and fossil fuels, while corporate demand for renewable electricity continues to grow—driven by:
- Global brand requirements (fashion, FMCG, tech)
- RE100 and CDP disclosures
- Net-zero and Scope 2 emission reduction targets
However, physical renewable electricity procurement options—such as direct PPAs or open-access green tariffs—remain limited or unavailable for most corporates.
I-RECs bridge this gap.
They allow renewable electricity generated within Bangladesh to be:
- Measured
- Verified
- Issued as certificates
- Redeemed by corporates to support credible renewable energy claims
Each I-REC represents 1 MWh of renewable electricity generated and tracked under the I-TRACK Foundation’s international standard.
How the Bangladesh I-REC Market Is Structured
1. Eligible Renewable Energy Sources
In Bangladesh, I-RECs are primarily issued from:
- Solar PV projects (rooftop and ground-mounted)
- Captive and utility-scale installations connected to the grid or behind-the-meter
Wind and other renewable technologies remain minimal at present, making solar the dominant I-REC supply source.
2. Plant Registration & Issuance
To generate I-RECs, a renewable energy plant must:
- Be registered under the I-REC(E) system
- Submit verified generation data
- Undergo validation and periodic verification
Once verified, electricity generation is converted into I-RECs and issued into a registry account. These certificates can then be:
- Transferred
- Traded
- Redeemed (retired) on behalf of end users
3. Buyers: Who Uses I-RECs in Bangladesh?
The primary demand comes from:
- Export-oriented manufacturers (especially textiles & apparel)
- Multinationals operating local facilities
- Global brands sourcing from Bangladesh
- Companies responding to buyer mandates for renewable electricity usage
For many of these organizations, I-RECs are currently the only scalable and credible solution for renewable energy procurement.
How I-RECs Support Corporate Renewable Energy Procurement
Scope 2 Emissions Reduction
Under the GHG Protocol’s market-based method, I-RECs enable companies to:
- Match electricity consumption with renewable attributes
- Reduce reported Scope 2 emissions
- Make verifiable renewable electricity claims
This is particularly important for:
- RE100 reporting
- CDP climate disclosures
- Annual sustainability reports
Compliance with Global Standards
I-RECs issued in Bangladesh are:
- Recognized by RE100
- Accepted by CDP
- Aligned with GHG Protocol guidance
This makes them suitable for global reporting and audit processes when properly redeemed and documented.
Flexibility for Corporates
I-RECs offer flexibility where physical procurement is constrained:
- No need for grid restructuring
- No dependency on local green tariffs
- Can be sourced annually or quarterly
- Can align with reporting periods and vintage requirements
Key Challenges in the Bangladesh I-REC Market
While the market has matured rapidly, it is not without challenges.
1. Market Volatility
Prices can fluctuate based on:
- Supply concentration
- Buyer demand cycles
- Vintage availability
Strategic procurement planning is essential to avoid short-term price exposure.
2. Quality & Claim Integrity
Not all I-RECs are equal in perception:
- Vintage alignment
- Project age
- Additionality narratives
- Transparency of documentation
Corporates increasingly demand clear evidence packs, not just certificates.
3. Understanding “Redemption” vs “Ownership”
Owning I-RECs is not sufficient.
Certificates must be formally redeemed (retired) in a registry to support renewable energy claims.
Incorrect handling can lead to:
- Double counting risks
- Invalid claims
- Audit findings
Best Practice: How Corporates Should Approach I-REC Procurement
Leading organizations in Bangladesh are moving toward:
- Planned, multi-year procurement strategies
- Clear internal policies on renewable energy claims
- Alignment between procurement, sustainability, and reporting teams
- Independent verification of redemption and documentation
I-RECs are no longer treated as a “box-ticking” exercise—but as part of a broader energy and ESG strategy.
The Road Ahead for Bangladesh
The Bangladesh I-REC market is expected to:
- Continue expanding with new solar capacity
- Face increasing scrutiny on claim quality
- Integrate more closely with ESG and net-zero strategies
- Evolve alongside emerging concepts like 24/7 energy matching and granular certificates
For corporates, this means greater opportunity—but also greater responsibility to procure and report renewable energy correctly.
What We Can Do Now
I-RECs have become a cornerstone of renewable energy procurement in Bangladesh. When used properly, they provide a credible, internationally recognized pathway for organizations to support renewable electricity, reduce Scope 2 emissions, and meet global sustainability commitments.
As expectations rise, the focus is shifting from whether companies procure I-RECs to how strategically and credibly they do so. To learn more, please talk to us via WhatsApp +8801701963899 or Schedule a call here: https://calendly.com/business-delnotic/30min
